A while back, I was involved in an online discussion about whether or not Creatives should give away their services for free in return for exposure. The majority of people in creative industries who piped in were strongly opposed to it. One common reason was that once you’ve done a project that costs the customer zilch, it’s really difficult to convince them next time that your work is actually worth what the market will bear. The crux of the argument is that most customers balk when you raise your prices as it is, and once you’ve started at ground zero — literally — where else can you go but up?

The same goes for customers you land by undercutting the market severely, in hopes of getting further work once you “prove” yourself. Psychologically, according to Creatives with experience in this area, the fortunate customer who’s received an incredible service and product for very little just can’t get their mind around the fact that your services are worth paying regular prices for next time. At the risk of being crass, you’re the prostitute who expects a wedding ring the second time in the sack.

Speaking of undercutting the market, many of the Creatives expressed disdain for their peers who do so, because overall, that practice lowers the perceived value of the services Creatives in that industry offer. If one web designer charges $1200 for a site that everyone else charges around $5000 for — and lives on Ramen noodles and peanut butter sandwiches to do so — the $5000 designers are forced to lower their prices drastically, live like paupers themselves, or get out of the business.

Makes sense.

For 10 years as New England Multimedia, designing websites, Scott and I have had our fair share of bad experiences with website clients we’d originally landed by undercutting the market, clients who had great business ideas but little money for websites, or clients who’d been hung out to dry by former web designers and wanted our help — for the balance of their website budget. Being the kind of people with big hearts and deep (although not always full) pockets who are eager to help those in need, we’ve taken a few surprising tumbles as we’ve discovered that sometimes the hardest people to please are those with the smallest budgets. (There are wonderful exceptions, of course!)

Our peers in web design have concurred. One has decided that he will only work with educated clients, while another works for a firm that won’t touch a project under $25,000. Still others are leaving the industry completely, leaving the small-time web design jobs to people so desperate for work they’ll practically stand on a corner with a cardboard sign saying, “Will design website for grocery money.”

Are there situations when “Free” or “Bargain Pricing” is good for a Creative? And are there ways to avoid the “Sticker Shock Syndrome” when the customer wants further work? How can Creatives set boundaries with clients up front to avoid problems later?